Momentum

Fueling unit performance and system growth.

Continual Improvement

For the past several years, we have been laying the foundation for unit revenue growth and our work has already begun to pay off. Our investments in our executive team, personnel, technology, marketing and national reaching sponsorships have been made and will continue to support our growth. In the past two years, we have nearly doubled our team and added experienced professionals to focus on key metrics that drive our momentum. We’ve successfully re-branded Smoothie King and will continue to help franchisees roll out our new brand positioning system wide. Our focus on product development and purchasing has allowed us to lower COGS and improve product quality. Our investments in store technology will improve consistency in product quality, store operations, and guest experience.

Average Annual Gross Sales of Top 25%

Top 25% average US $681,724 *

* $681,724 is the average gross sales of the top 25% of all traditional franchised units in operation for the entire calendar year ended December 31, 2015. Of the 130 franchised units included in the average gross sales for the top 25%, 46 franchised units (35%) met or exceeded the average gross sales. There is no assurance, however, that you will do as well. See Item 19 of the Smoothie King® Franchise Disclosure Document dated April 29, 2016, as amended May 11, 2016, for more information.

2011 – 2015 Same Store Sales Increase

2011 = 5.16%2012 = 10.88%2013 = 5.64%2014 = 9.20%2015 = 9.56%

This information is based on the average unit gross sales percentage increase from the previous calendar year for all franchised traditional Smoothie King® units that were in operation for the following the entire 24 month periods ending: December 31, 2015 – of the 453 franchised units included in the comparison, 218 units (48.1%) met or exceeded the average unit gross sales percentage increase; December 31, 2014 – of the 441 franchised units included in the comparison, 221 units (50.1%) met or exceeded the average unit gross sales percentage increase; December 31, 2013 – of the 435 franchised units included in the comparison, 208 units (47.8%) met or exceeded the average unit gross sales percentage increase; December 31, 2012 – of the 430 franchised units included in the comparison, 214 units (49.8%) met or exceeded the average unit gross sales percentage increase. December 31, 2011 - of the 427 franchised units included in the comparison, 195 units (45.7%) met or exceeded the average unit gross sales percentage increase; and December 31, 2011 – of the 427 franchised units included in the comparison, 195 units (45.7%) met or exceeded the average unit gross sales percentage increase. There is no assurance, however, that you will do as well. See Item 19 of the Smoothie King® Franchise Disclosure Document dated April 29, 2016, as amended May 11, 2016, for more information.”

* This information is based on the average unit gross sales percentage increase from 2014 to 2015 for all franchised traditional Smoothie King® units that were in operation for the entire 24 month period ending December 31, 2015. Of the 453 franchised units included in the comparison, 218 units (48.1%) met or exceeded the average unit gross sales percentage increase. There is no assurance, however, that you will do as well. See Item 19 of the Smoothie King® Franchise Disclosure Document dated April 29, 2016, as amended May 11, 2016, for more information."